Nifty below 5200; auto, banks, metals decline

MUMBAI: The Nifty extended its intraday losses and was near the day's lows as profit booking intensified across the board on the back of the rupee's depreciation against the dollar. There are chances that the market may break out of the tight trading range in coming sessions.

Apart from tax and GAAR concerns, the rupee's depreciation has been a worrying factor for foreign institutional investors. The value of international investors' holdings in the Indian market eroded by $9 billion in the past month when the rupee slid 4% against the US dollar, a report in The Economic Times said.

The rupee was at 53.40 per dollar, down 44 paise, against the previous close of 52.96. The Indian currency may breach the 54-per-dollar mark in the near to medium term, according to analysts.

At 02:40 p.m., the Nifty was at 5,185.75, down 53.40 points, or 1.02 percent. It has touched a high of 5,217.30 and a low of 5,180.65 in trade today.

The Sensex was at 17,162.24, down 139.67 points, or 0.81 percent. It has touched a high of 17,271.77 and a low of 17,120.86 in trade today.

Hero MotoCorp posted a 20% increase in net profit to Rs 603 crore in the quarter ended March, narrowly missing analysts' estimates, as higher raw material costs damped gains from record sales of bikes and scooters. Its total turnover (net sales and other income) in the fourth quarter rose 12% to Rs 6,035 crore driven by higher volume growth as sales jumped 8% to 15.72 lakh units. The company announced a dividend of Rs 45 per share.